It took a lot of patience, but Research In Motion Ltd. (RIMM) finally broke out yesterday above the $72 resistance level. The chart below summarizes the bullish technical set-up.
*Chart created using TeleChart:
RIMM fascinates because it is one of those stocks that attracts what I call “passionistas” – people with extremely strong and adamant convictions about RIMM’s fundamental prospects, bearish or bullish. I for one have no idea or opinion on whether RIMM is soon going out of business or will finally overtake Apple in the smartphone market. I am surrounded by friends who remain bearish on RIMM, but I last flipped bullish on RIMM in mid-February. I have been waiting out the churn ever since then. (RIMM also surprised me by spending so much so soon on its share repurchase program).
For now, the upside target on RIMM remains a close of the September gap, around $83. At the current pace, this could happen before the March 31 earnings report, but it would make sense if instead that event serves as the catalyst to launch RIMM over the next hurdle.
Be careful out there!
Full disclosure: long RIMM calls